Marketing pride ferrell 2014e part 2

Marketing pride ferrell 2014e part 2 Marketing pride ferrell 2014e part 2 Marketing pride ferrell 2014e part 2 Giáo trình Marketing management Marketing pride ferrell 2014e part 2 Giáo trình Marketing management Marketing pride ferrell 2014e part 2 Giáo trình Marketing management Marketing pride ferrell 2014e part 2 Giáo trình Marketing management Marketing pride ferrell 2014e part 2 Giáo trình Marketing management Marketing pride ferrell 2014e part 2

Product Concepts | Chapter 11 365 © AP Images Comsumer Reports and ShopSmart Consumers who spend considerable time researching product attributes and comparisons find Consumer Reports and ShopSmart very appealing purchased less frequently, inventory turnover is lower, and marketing channel members expect to receive higher gross margins Although large sums of money may be required to advertise shopping products, an even larger percentage of resources are likely to be used for personal selling The producer and the marketing channel members usually expect some cooperation from one another with respect to providing parts and repair services and performing promotional activities In certain situations, both shopping products and convenience products may be marketed in the same location Both Target and Walmart carry shopping products, such as televisions, computers, and cameras, as well as groceries and other convenience products specialty products Items with unique characteristics that buyers are willing to expend considerable effort to obtain Specialty Products generally buyers are willing to expend considerable effort to obtain them Buyers actually plan the purchase of a specialty product; they know exactly what they want and will not accept a substitute Examples of specialty products include a Mont Blanc pen and a oneof-a-kind piece of baseball memorabilia, such as a ball signed by Babe Ruth When searching for specialty products, buyers not compare alternatives; they are concerned primarily with finding an outlet that has the preselected product available Racing fans interested in a highstatus way to commemorate attending the Indy 500 doubtless found the specially designed Tag Heuer Indy 500 wristwatch very attractive The fact that an item is a specialty product can affect a firm’s marketing efforts in several ways Specialty products are often distributed through a limited number of retail outlets Like shopping products, they are purchased infrequently, causing lower inventory turnover and thus requiring relatively high gross margins However, just because specialty products are purchased less frequently does not necessarily make them less profitable For example, the Swatch Group, the maker of a European line of wrist watches, sells significantly more limited edition “swatches” than traditional ones Courtesy of The Advertising Archives Specialty products possess one or more unique characteristics, and Specialty Products DeBeers has specialized in diamond jewelry for over 100 years Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 366 Part | Product Decisions © AP Images/PRNewsFoto/Carbonite, Inc Unsought Products Unsought products are products purchased when a sudden problem must be solved, products of which customers are unaware, and products that people not necessarily think of purchasing Emergency medical services and automobile repairs are examples of products needed quickly to solve a problem A consumer who is sick or injured has little time to plan to go to an emergency medical center or a hospital Likewise, in the event of a broken fan belt on the highway, a consumer will likely seek out the nearest auto repair facility or call AAA to get back on the road as quickly as possible Computer users must purchase antivirus and spyware detection software to protect their computers even though they may not want to make such purchases In these cases, speed and problem resolution are far more important than price, in addition to other features buyers might consider if they had more time for decision making Companies like ServiceMaster, which markets emergency services like disaster recovery and plumbing repair, are making the purchases of these unsought products more bearable by building trust with consumers through recognizable brands (ServiceMaster Clean and Rescue Rooter) and superior functional performance Business Products Business products are usually purchased on the basis of an organization’s goals and objectives Generally, the functional aspects of the product are more important than the psychological rewards sometimes associated with consumer products Business products can be classified into seven categories according to their characteristics and intended uses: installations, accessory equipment, raw materials, component parts, process materials, MRO supplies, and business services Unsought Products Carbonite provides online security to prevent file and data loss Unfamiliar information technology is sometimes not purchased, because there may be limited consciousness of the need until a breach of the system’s security occurs Installations Installations include facilities, such as office buildings, factories, and warehouses, as well unsought products Products purchased to solve a sudden problem, products of which customers are unaware, and products that people not necessarily think of buying installations Facilities and nonportable major equipment accessory equipment Equipment that does not become part of the final physical product but is used in production or office activities as major pieces of equipment that are nonportable, such as production lines and very large machines Major equipment is normally used for production purposes Some major equipment is custom made to perform specific functions for a particular organization; other items are standardized and perform similar tasks for many types of firms Normally, installations are expensive and intended to be used for a considerable length of time Because they are so expensive and typically involve a long-term investment of capital, purchase decisions are often made by high-level management Marketers of installations frequently must provide a variety of services, including training, repairs, maintenance assistance, and even financial assistance Accessory Equipment Accessory equipment does not become a part of the final physical product but is used in production or office activities Examples include file cabinets, fractional-horsepower motors, calculators, and tools Compared with major equipment, accessory items are usually much cheaper, purchased routinely with less negotiation, and treated as expense items rather than capital items, because they are not expected to last as long Accessory products are standardized Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Product Concepts | Chapter 11 367 Going Green Is a chainsaw “green” when it runs on electricity instead of gasoline? What about cigarettes that use organic tobacco? This is a red-hot issue as sales of green products rise, and both marketers and consumers try to determine what makes a product green Consider what happened when Home Depot invited suppliers to nominate green products for its Eco Options promotional campaign Of the 176,000 items carried in its stores, suppliers believed more than 60,000 to be worthy of the “green” designation After screening the products using the Environmental Protection Agency’s Energy Star designation, Home Depot allowed only 2,500 of them into the Eco Option program Obviously, different stakeholders have differing opinions on what makes a product green Companies must also make tradeoffs when creating green products Some of these tradeoffs are problematic For instance, when SunChips introduced its bioplastic bag, the bag was so noisy that the company discontinued it Compact fluorescent light bulbs save energy, but they also contain mercury that could harm consumers if they break The truth of the matter is that all products have some effect on the environment Rather than making a 100 percent green product, marketers could instead look for ways to increase sustainability throughout its operations to decrease its negative environmental impact.b items that can be used in several aspects of a firm’s operations More outlets are required for distributing accessory equipment than for installations, but sellers not have to provide the numerous services expected of installations marketers Raw Materials Raw materials are the basic natural materials that are used in marketing a physical prod- uct They include minerals, chemicals, agricultural products, and materials from forests and oceans They are usually bought and sold according to grades and specifications, and in relatively large quantities Corn, for example, is a raw material that is found in many different products, including food, beverages (as corn syrup), and even fuel (ethanol) Consider an unusual raw material—killer wasps Bug Agentes Biológicos produces wasps to combat larvae and stink bugs that threaten sugarcane and soybean plants The wasps are sprayed onto the fields via airplane just like a pesticide.7 Component Parts Component parts become part of the physical product and are either finished items ready for assembly or products that need little processing before assembly Although they become part of a larger product, component parts often can be easily identified and distinguished Spark plugs, tires, clocks, brakes, and headlights are all component parts of an automobile Indiabased Dynamatic Technologies is a company that specializes in component parts for a variety of companies Its clients include Airbus, Ford, Honeywell, and Cummins.8 These companies purchase such items according to their own specifications or industry standards They expect the parts to be of specified quality and delivered on time so that production is not slowed or stopped Producers that are primarily assemblers, such as most lawn mower and computer manufacturers, depend heavily on suppliers of component parts Process Materials Process materials are used directly in the production of other products Unlike component parts, however, process materials are not readily identifiable A salad dressing manufacturer may include vinegar in its salad dressing; the vinegar is a process material, because it is raw materials Basic natural materials that become part of a physical product component parts Items that become part of the physical product and are either finished items ready for assembly or items that need little processing before assembly process materials Materials that are used directly in the production of other products but are not readily identifiable Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it © iStockphoto.com/CTRd What Makes a Green Product? 368 Part | Product Decisions included in the salad dressing but is not identifiable As with component parts, process materials are purchased according to industry standards or the purchaser’s specifications MRO Supplies © 2011 Accenture All rights reserved MRO supplies are maintenance, repair, and operating items that facilitate production and operations but not become part of the finished product Paper, pencils, oils, cleaning agents, and paints are in this category Although you might be familiar with Tide, Downy, and Febreze as consumer products, to restaurants and hotels, they are MRO supplies required to wash dishes and launder sheets and towels Selling MRO supplies can be a profitable business Procter & Gamble is increasingly targeting business customers in the $3.6 billion market for janitorial and housekeeping products.9 MRO supplies are commonly sold through numerous outlets and are purchased routinely To ensure supplies are available when needed, buyers often deal with more than one seller Business Services Business services are the intangible products that many organi- zations use in their operations They include financial, legal, market research, information technology, and janitorial services Firms must decide whether to provide their own services internally or obtain them from outside the organization For example, E-Verify Business Products quickly confirms an employee’s eligibility to work in the United Accenture provides global management consulting, technology States Most firms cannot provide this service This decision to services, and outsourcing to businesses purchase services depends on the costs associated with each alternative and how frequently the services are needed As an example, IBM focuses on services that help companies with business processes and management systems and with integrating advanced technology into their operations PRODUCT LINE AND PRODUCT MIX MRO supplies Maintenance, repair, and operating items that facilitate production and operations but not become part of the finished product business services Intangible products that many organizations use in their operations product item A specific version of a product that can be designated as a distinct offering among a firm’s products product line A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations product mix The composite, or total, group of products that an organization makes available to customers Marketers must understand the relationships among all the products of their organization to coordinate the marketing of the total group of products The following concepts help describe the relationships among an organization’s products A product item is a specific version of a product that can be designated as a distinct offering among an organization’s products An Abercrombie and Fitch polo shirt represents a product item A product line is a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations For example, Purina’s Fancy Feast includes five different varieties of wet, dry, or kitten gourmet cat food in the same product line.10 The exact boundaries of a product line (although sometimes blurred) are usually indicated by the use of descriptive terms, such as “frozen dessert product line” or “shampoo product line.” Specific product items in a product line, such as different dessert flavors or shampoos for oily and dry hair, usually reflect the desires of different target markets or the different needs of consumers Thus, to develop the optimal product line, marketers must understand buyers’ goals Firms with high market share are likely to expand their product lines aggressively, as are marketers with relatively high prices or limited product lines.11 This pattern can be seen in the personal computer industry, where companies are likely to expand their product lines when industry barriers are low or perceived market opportunities exist A product mix is the composite, or total, group of products that an organization makes available to customers Procter & Gamble’s product mix comprises all the health-care, beauty-care, Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 369 Courtesy of The Advertising Archives Courtesy of The Advertising Archives Product Concepts | Chapter 11 Product Line vs Product Mix Burberry produces a line of coats and also maintains a diverse product mix, including watches, handbags, shoes, sunglasses, and other clothing items laundry and cleaning, food and beverage, paper, cosmetic, and fragrance products that the firm manufactures The width of product mix is measured by the number of product lines a company offers General Electric offers multiple product lines, including consumer products like housewares, health-care products like molecular imaging, and commercial engines for the military.12 The depth of product mix is the average number of different products offered in each product line Figure 11.2 shows the width and depth of a part of Procter & Gamble’s product mix Procter & Gamble is known for using distinctive branding, packaging, segmentation, and consumer advertising to promote individual items in its detergent product line Tide, width of product mix The number of product lines a company offers depth of product mix The average number of different products offered in each product line Depth Laundry detergents Ivory Snow 1930 Dreft 1933 Tide 1946 Cheer 1950 Bold 1965 Gain 1966 Era 1972 Febreze Clean Wash 2000 Toothpastes Gleem 1952 Crest 1955 Bar soaps Deodorants Shampoos Tissue/Towel Ivory 1879 Camay 1926 Zest 1952 Safeguard 1963 Oil of Olay 1993 Old Spice 1948 Secret 1956 Sure 1972 Pantene 1947 Head & Shoulders 1961 Vidal Sassoon 1974 Pert Plus 1979 Ivory 1983 Infusium 23 1986 Physique 2000 Herbal Essence 2001 Charmin 1928 Puffs 1960 Bounty 1965 Width Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it © Cengage Learning 2014 Figure 11.2 The Concepts of Product Mix Width and Depth Applied to U.S Procter & Gamble Products 370 Part | Product Decisions Bold, Gain, Cheer, and Era—all Procter & Gamble detergents—share the same distribution channels and similar manufacturing facilities, but each is promoted as a distinctive product, adding depth to the product line PRODUCT LIFE CYCLES AND MARKETING STRATEGIES Just as biological cycles progress from birth through growth and decline, so product life cycles As Figure 11.3 shows, a product life cycle has four major stages: introduction, growth, maturity, and decline As a product moves through its life cycle, the strategies that relate to competition, promotion, distribution, pricing, and market information must be periodically evaluated and possibly changed Astute marketing managers use the life-cycle concept to make sure the introduction, alteration, and termination of a product are timed and executed properly By understanding the typical life-cycle pattern, marketers are better able to maintain profitable products and drop unprofitable ones Introduction product life cycle The progression of a product through four stages: introduction, growth, maturity, and decline introduction stage The initial stage of a product’s life cycle; its first appearance in the marketplace when sales start at zero and profits are negative The introduction stage of the product life cycle begins at a product’s first appearance in the market, when sales start at zero and profits are negative Profits are below zero because initial revenues are low, and the company generally must cover large expenses for promotion and distribution Notice in Figure 11.3 how sales should move upward from zero, and profits should also move upward from a position in which they are negative because of high expenses in developing new products Developing and introducing a new product can mean an outlay of millions Consider that the battery pack for the recently introduced Nissan Leaf cost the company $18,000 per pack The Leaf is not expected to be profitable until its third year.13 And although the importance of new products is significant, the risk of new-product failure is quite high, depending on the industry For instance, many television manufacturers were disappointed to see the initially slow adoption rate of 3D televisions in North America But a combination of forces, including an uncertain economy, the expense of 3D televisions and glasses, and consumers’ reluctance Figure 11.3 The Four Stages of the Product Life Cycle Introduction stage Growth stage Maturity stage Decline stage Industry profits Time Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it © Cengage Learning 2014 Dollars Industry sales Product Concepts | Chapter 11 371 to change their television viewing habits, have made 3D television a risky investment for many consumers.14 Because of high risks and costs, few product introductions represent revolutionary inventions More typically, product introductions involve a new variety of packaged convenience food, a new model of automobile, or a new fashion in clothing rather than a major product innovation For instance, Kraft released its Philadelphia Cooking Cremes in 10-oz containers after discovering that consumers liked to use its cream cheese varieties in cooking Its new product line comes in four different flavors of cream cheese.15 The more market-oriented the firm, the more likely it will be to launch innovative, new-to-the-market products.16 Potential buyers must be made aware of the new product’s features, uses, and advantages Efforts to highlight a new product’s value can create a foundation for building brand loyalty and customer relationships.17 Two difficulties may arise at this point First, sellers may lack the resources, technological knowledge, and marketing know-how to launch the product successfully Firms without large budgets can still attract attention by giving away free samples, as Essence of Vali did with its aromatherapy products Another small-budget tactic is to gain visibility through media appearances Dave Dettman, a.k.a Dr Gadget, specializes in promoting new products on television news and talk programs Companies like Sony, Disney, Warner Brothers, and others have hired Dr Gadget to help with the introduction of new products.18 Second, the initial product price may have to be high to recoup expensive marketing research or development costs Given these difficulties, it is not surprising that many products never get beyond the introduction stage Most new products start off slowly and seldom generate enough sales to bring immediate profits Less than 10 percent of new products succeed in the marketplace, and 90 percent of successes come from a handful of companies.19 As buyers learn about the new product, marketers should be alert for product weaknesses and make corrections quickly to prevent the product’s early demise Marketing strategy should be designed to attract the segment that is most interested in the product and has the fewest objections As the sales curve moves upward and the break-even point is reached, the growth stage begins Growth During the growth stage, sales rise rapidly, profits reach a peak, and then they start to decline (see Figure 11.3) The growth stage is critical to a product’s survival, because competitive reactions to the product’s success during this period will affect the product’s life expectancy When Truvia, a natural sugar substitute, was introduced, demand rose quickly Although Truvia is more expensive than other sugar substitutes, its popularity has prompted Coca-Cola, Pepsi, and Kraft to begin using Truvia in certain products.20 Profits begin to decline late in the growth stage as more competitors enter the market, driving prices down and creating the need for heavy promotional expenses At this point, a typical marketing strategy encourages strong brand loyalty and competes with aggressive emulators of the product During the growth stage, the organization tries to strengthen its market share and develop a competitive niche by emphasizing the product’s benefits As coconut water grows as a sports drink, marketers for the beverage are attempting to promote its benefits, such as its natural electrolytes, over those of traditional sports drinks.21 Marketers should also analyze competing brands’ product positions relative to their own brands and take corrective actions Aggressive pricing, including price cuts, is also typical during this stage As sales increase, management must support the momentum by adjusting the marketing strategy The goal is to establish and fortify the product’s market position by encouraging brand loyalty To achieve greater market penetration, segmentation may have to be used more intensely This would require developing product variations—a deeper product mix—to satisfy the needs of people in several different market segments Apple, for example, introduced more variations on its wildly popular iPod MP3 player, including the affordable iPod shuffle, the smaller iPod nano, and the iPod touch, all of which helped expand Apple’s market penetration in the competitive MP3 player industry On the other hand, Netflix adjusted its strategy and not only lost money and customers but also saw its profits and stock price sink growth stage The product life-cycle stage when sales rise rapidly, profits reach a peak, and then they start to decline Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 372 Part | Product Decisions Cargill, Inc When Netflix announced plans to separate its DVD-by-mail service into a separate company named Qwikster, consumers were outraged They felt that having to navigate between two websites—the Internet-streaming Netflix site and the DVDby-mail Qwikster—would be too complicated.22 Gaps in geographic market coverage should be filled during the growth period As a product gains market acceptance, new distribution outlets usually become easier to obtain Marketers sometimes move from an exclusive or a selective exposure to a more intensive network of dealers to achieve greater market penetration Marketers must also make sure the physical distribution system is running efficiently so that customers’ orders are processed accurately and delivered on time Promotion expenditures may be slightly lower than during the introductory stage but are still quite substantial As sales increase, promotion costs should drop as a percentage of total sales A falling ratio between promotion expenditures and sales should contribute significantly to increased profits The advertising messages should stress brand benefits Coupons and samples may be used to increase market share After recovering development costs, a business may be able to lower prices As sales volume increases, efficiencies in production can result in lower costs These savings may be passed on to buyers, as in the case of flat-screen televisions; when they were initially introduced, the price was $5,000 or more As demand soared, manufacturers of both LCD and plasma techGrowth nologies were able to take advantage of economies of scale to Truvia is a natural sweetener that is in the growth stage of the product reduce production costs and lower prices to less than $1,000 life cycle within several years If demand remains strong and there are few competitive threats, prices tend to remain stable If price cuts are feasible, they can help a brand gain market share and discourage new competitors from entering the market Entrepreneurship in Marketing Entrepreneurs: Perry Chen, Yancey Strickler, and Charles Adler Business: Kickstarter Founded: 2009 | New York City, New York Success: Since its launch, Kickstarter has raised over $75 million for creative projects and has a 44 percent success rate Got a project idea, but you can’t find funding? Kickstarter might be the answer Kickstarter is a Web platform that engages in “crowd-sourced financing.” Entrepreneurs post their ideas on the site, and funders can choose whether to fund them In return, funders either get a free item or a finished product at a steep discount Since its launch, the site has featured 26,000 creative projects in fields like technology, design, music, and art Kickstarter takes an all-or-nothing approach, so entrepreneurs must reach a certain financing goal on the website in order to receive any funding In an uncertain economic climate where funding is scarce, Kickstarter enables funders to find and choose projects and share in the financial risks Entrepreneurs benefit not only from funding but also from feedback provided by consumers and investors This feedback enables entrepreneurs to understand market needs and tailor their products accordingly, a significant component to product success Thanks to Kickstarter, many of the products featured on its site have the chance to move quickly from the introduction to the growth stage.c Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it © iStockphoto.com/CTRd Kickstarter Allows Entrepreneurs to Unleash Products Product Concepts | Chapter 11 373 Maturity During the maturity stage, the sales curve peaks and starts to decline and profits continue to fall (see Figure 11.3) This stage is characterized by intense competition, because many brands are now in the market Competitors emphasize improvements and differences in their versions of the product As a result, during the maturity stage, stronger companies tend to squeeze out their weaker competitors or consumers begin to lose interest in the product During the maturity phase, the producers who remain in the market are likely to change their promotional and distribution efforts Advertising and dealer-oriented promotions are typical during this stage of the product life cycle Marketers must also take into account that, as the product matures, buyers’ knowledge of it reaches a high level Consumers of the product are no longer inexperienced generalists; instead they are experienced specialists Marketers of mature products sometimes expand distribution into global markets Often, the products have to be adapted to more precisely fit the differing needs of customers For instance, after 40 years of the traditional single serve ketchup packet, Heinz determined that the packets were too frustrating to open, particularly for drivers eating in their cars This was problematic as the company receives two-thirds of its fast-food revenue from drivethru lanes To solve this problem, Heinz introduced the larger “Dip and Squeeze” ketchup packet These packets allow the consumer to either peel off a corner of the packet or squeeze out the ketchup.23 Because many products are in the maturity stage of their life cycles, marketers must know how to deal with these products and be prepared to adjust their marketing strategies As Table 11.1 shows, there are many approaches to altering marketing strategies during the maturity stage As noted in the table, to increase the sales of mature products, marketers may suggest new uses for them Arm & Hammer, through refrigerator freshening and partnerships with toothpaste manufacturers, has boosted demand for its baking soda with this method, providing multiple uses for this product As customers become more experienced and knowledgeable about products during the maturity stage (particularly about business products), the benefits they seek may change as well, necessitating product modifications Consider that traditional truck-based sport utility maturity stage The stage of a product’s life cycle when the sales curve peaks and starts to decline, and profits continue to fall Approach Examples Develop new-product uses Knox gelatin used as a plant food Arm & Hammer baking soda marketed as a refrigerator and cat litter deodorant as well as co-branded in toothpastes Frankincense oil used to eliminate skin age spots Increase product usage among current users Multiple packaging used for products in which a larger supply at the point of consumption actually increases consumption (such as for soft drinks with “The Cube” 24-pack package design) Increase number of users Global markets or small niches in domestic markets pursued Add product features Traditional SUVs slowly replaced by crossover vehicles Satellite radio and park-assist systems in automobiles Change package sizes Single-serving sizes introduced Travel-size packages of personal-care products introduced Concentrated versions of cleaning products in smaller packages Increase product quality Life of light bulbs increased Reliability and durability of U.S.-made automobiles increased Change nonproduct marketing mix variables—promotion, price, distribution Focus of Dr Pepper advertisements shifted from teenagers to people ages 18 to 54 A package of dishwasher detergent containing one-third more product offered for the same price Computer hardware marketed through mail-order outlets Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it © Cengage Learning 2014 Table 11.1 Selected Approaches for Managing Products in the Maturity Stage 374 Part | Product Decisions vehicles, such as the Ford Explorer and GMC Tahoe, have reached maturity Consumers seem more interested in “crossovers”: car-based utility vehicles like the Chevrolet Equinox, Honda CR-V, Audi Q5, and Volvo XC60 Hybrid SUVs are also an option for consumers who like the horsepower of traditional SUVs Automakers are responding to this interest with more models and features With their improved ride, handling, and fuel economy, crossovers and hybrids are in a rapid sales growth stage at the expense of traditional SUVs.24 Three general objectives can be pursued during the maturity stage: Generate cash flow This is essential for recouping the initial investment and generating excess cash to support new products Maintain share of market Companies with marginal market share must decide whether they have a reasonable chance to improve their position or whether they should drop out Increase share of customer Whereas market share refers to the percentage of total customers a firm holds, share of customer relates to the percentage of each customer’s needs that the firm is meeting For example, many banks have added new services (brokerage, financial planning, auto leasing, etc.) to gain more of each customer’s financial services business Likewise, many supermarkets are seeking to increase share of customer by adding services, such as restaurants, movie rentals, banking, and dry cleaning, to provide one-stop shopping for their customers’ household needs.25 During the maturity stage, marketers actively encourage dealers to support the product Resellers may be offered promotional assistance in lowering their inventory costs In general, marketers go to great lengths to serve resellers and provide incentives for selling their brands Maintaining market share during the maturity stage requires moderate, and sometimes large, promotion expenditures Advertising messages focus on differentiating a brand from the field of competitors, and sales promotion efforts are aimed at both consumers and resellers A greater mixture of pricing strategies is used during the maturity stage Strong price competition is likely and may ignite price wars Firms also compete in ways other than price, such as through product quality or service In addition, marketers develop price flexibility to differentiate offerings in product lines Markdowns and price incentives are common Prices may have to be increased, however, if distribution and production costs rise Even something as simple as packaging can be used to revitalize a product For instance, Procter & Gamble, PepsiCo, and General Mills have begun resurrecting their old packaging designs for their products in the hopes that older, less cluttered designs will appeal to consumers’ perceptions of “better times.”26 Decline decline stage The stage of a product’s life cycle when sales fall rapidly During the decline stage, sales fall rapidly (refer to Figure 11.3) When this happens, the marketer considers pruning items from the product line to eliminate those that are no longer earning a profit The marketer may also cut promotion efforts, eliminate marginal distributors, and finally plan to phase out the product This can be seen in the decline in demand for most carbonated beverages, which has been continuing for several years as consumers turn away from higher-calorie soft drinks Experts predict that soft-drink sales will continue to fall at least 1.5 percent each year for the next to 10 years This shift in consumer preferences is already changing the way companies produce and market bottled beverages, with companies expanding their offerings of juices, waters, and more healthful drink options.27 An organization can justify maintaining a product only as long as the product contributes to profits or enhances the overall effectiveness of a product mix For instance, HP discontinued its TouchPad after a failed attempt to compete against the Apple iPad.28 In the decline stage, marketers must determine whether to eliminate the product or try to reposition it to extend its life Usually, a declining product has lost its distinctiveness because similar competing or superior products have been introduced Competition engenders increased substitution and brand switching as buyers become insensitive to minor product differences For these reasons, marketers little to change a product’s style, design, or other attributes during its decline New technology or social trends, product substitutes, or environmental Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it I-20 Subject Index Ideas, as products, Identity theft, 237, 239 Illustrations, advertising, 610–611 Immediate drop, 408 Immigrants, diversity in the United States, 91–92, 92 (table) Importer, 42 Importing, 293–294, 304 Import tariffs, 280–281 Impulse buying, 219, 238 Inactives, social technographics, 332 (table), 333, 340 Incentives, encouraging compliance with legislation and regulations, 83 Income, 76, 94 Income statement, A1–A7 India, 275, 278–279, 279 (table), 285, 309, 320, 345, 408, 523, 552, 686 Individual branding, 456, 466 Individual factors, business buying decision process, 259 (illus.), 261, 264 Industrial classification systems, 262–263, 263 (table), 265 Industrial demand, 256–258, 264 Industrial distributor, 490 Industrial market, 177, 196 Inelastic demand, 257, 679, 694 Influencers, 258, 264 Infomercials, 536 Information, buying decision process and, 224–225 Information inputs, 221 Information system, 15, 46 Information technology, 316, 482 Infringement, 455 In-home interviews, 156 Innovators, 377 In-program product placement, 488, 584–585, 585 (illus.) Inseparability, of production and consumption, 421, 425 (table), 426, 437–438 Inside order takers, 637 Inspection, buying process, 255, 264 Installations, 366 Institutional advertising, 598–599, 620 Institutional markets, 251, 264 In-store demonstrations, 225 In-store dining, 523 In-store medical services, 441–442 Intangibility, 420, 420 (illus.), 425 (table), 426–428, 437–438 Integrated marketing communication See also Promotion explanation of, 566–567, 588 information flows in, 570–571, 570 (illus.) Intellectual property issues, 339, 341 Intensity of market coverage, 494–496, 495 (illus.), 496 (illus.), 512, 580 Intensive distribution, 494–495, 495 (illus.), 496 (illus.) Interactive Advertising Board, 338 Interactivity, digital media, 318 (table), 319 Interest rates, credit and, 77 Interior atmospheric elements, 533–534 Intermodal transportation, 509–510, 510 (illus.) Internal information search, 215 Internal reference price, 687 Internal social networks, 321 International cargo, transportation, 508 International divisions, 300 Internationally integrated structures, 301 International marketing explanation of, 274–275, 304 globalization of marketing mixes, 301–303, 302 (table) levels of involvement in, 293, 293 (illus.) International marketing research, 166–167 International Standard Industrial Classification System (ISIC System), 262 International trade Asia-Pacific Economic Cooperation (APEC), 289–291 Association of Southeast Asian Nations (ASEAN), 291–292 bribery, 81, 114, 643 Central American Free Trade Agreement-Dominican Republic (CAFTA-DR), 287 competition in, 284–285, 284 (table), 297 contract manufacturing, 296 currency valuation and, 278 direct ownership, 298–299, 298 (table) economic instability and, 277 entry modes in, 292–299, 304 environmental forces in, 275–286, 304 ethical and social responsibility forces, 281–284, 282 (table), 283 (table) European Union (EU), 288–289, 337 export departments, 299–300 General Agreement on Tariffs and Trade (GATT), 292 importing/exporting, 293–294, 304 international divisions, 300 internationally integrated structures, 301 joint ventures, 296–297 licensing and franchising, 295–296, 304 North American Free Trade Agreement (NAFTA), 286–288 organizational structures for, 299–301, 299 (illus.), 304 political, legal, and regulatory forces, 279–281, 280 (table), 304 regional trade alliances, markets, and agreements, 286–292, 304 retailers, 523 sociocultural forces in, 275–277 Southern Common Market (MERCOSUR), 289 technological forces in, 285–286 trading companies, 294–295, 304 World Trade Organization (WTO), 292 International trade agreements, 286–292, 304 Internet See also Digital marketing; Electronic marketing; Social media; Social networking access to, 285 advertising on, 605 (illus.), 606, 608 (table) consumer contact through, 20–21 criticism on, 324 data collection from, 165, 167 growth of, 317 mobile Internet activities, 21, 21 (table) mobile websites, 328 for promotion, as pull medium, 329–330, 340 uses of, 88 Internet-based marketing See Electronic marketing Interpersonal factors, business buying decision process, 259 (illus.), 261, 264 Interpretation, as perceptual process, 222 Introduction stage, product life cycle, 370–371, 370 (illus.) Inventory management, 504–505, 504 (illus.) Inventory turnover rate, A5, A7 Ireland, 280 (table), 289 ISIC System See International Standard Industrial Classification System Israel, 320 Italy, 289, 309 J Japan, 277–278, 279 (table), 285, 290–291, 320, 419, 523, 550, 552 JIT inventory management See Just-in-time (JIT) inventory management Jobber, 542 Joiners, social technographics, 332 (table), 333, 340 Joint demand, 257 Joint ventures, 296–297 Jordan, 279 (table) Just-in-time (JIT) inventory management, 505 Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Subject Index K Kenya, 279, 279 (table), 286, 320 Kinesic communication, 576 Korea, 277, 280 (table), 291, 320, 552 L Labeling, 463–466 Laggards, 377 Lanham Act (1946), 80, 81 (table) Late majority, 377 Late-mover advantage, 41–42, 53 Latinos See also Hispanic people use of term, 236 Layout, advertising, 611 Learning, buying decision process and, 224–225, 239 LEDs See Light-emitting diodes Legal issues bribery, 81, 114, 643 consumer fraud, 237, 239, 338, 341 counterfeiting, 114 (table), 115, 282, 282 (table), 290, 455, 651 coupon fraud, 651 deception in advertising, 585, 588 deceptive pricing, 690 infringement, 455 intellectual property, 339, 341 marketing channels, 510–511, 513 misleading advertising, 599 pirating, 282, 339 price discrimination, 690 price-fixing, 690 privacy, 165, 222, 337–338, 341 trademarks, 80, 276, 446, 455, 465 trade name, 446, 465 Legislation consumer protection, 82–83 consumer protection laws, 111 encouraging compliance, 83 greenwashing, 114, 579 international trade, 279 labeling, 463 marketing environment and, 70, 78–83, 81 (table), 94 procompetitive, 80–82 social responsibility and, 106 (illus.), 107, 127 telemarketing, 36 United Kingdom, 82 United States, 81 (table), 94 Level of involvement, 217–219, 218 (illus.), 238 Level of quality, 402–403, 409 Licensing, 295–296, 304 brand licensing, 457–458, 466 Life-cycle concept, 380 Lifestyle, buying decision process and, 228–229, 239 Lifestyle segmentation, 187 Lifestyle shopping centers, 531, 547 Light Bulb Finder app, 216 Light-emitting diodes (LEDs), 398 Limited decision making, 218–219, 238 Limited-line retailers, 528 Limited-line wholesalers, 544 Limited-service wholesalers, 543 (table), 544–545, 544 (table), 548 Line extensions, 390–391, 409, 456 Location-based networks, 328 Logistics See Physical distribution Logistics management, 482, 483 (table), 512–513 Logos, international marketing and, 276 Low-contact services, 423–424 Low-involvement products, 217–218 Luxury products, 277, 361, 361 (illus.), 495–496, 689 M “Made in U.S.A.” label, 464–465 Magazines, advertising in, 605 (illus.), 606, 608 (table) Magnuson-Moss Warranty Act (1975), 81 (table) Mail-in rebates, 652 Mail-order wholesalers, 544 (table), 545, 548 Mail panels, 155, 167 Mail survey, 154–155, 155 (table), 167 Malaysia, 552 Manufacturer brand, 451–452, 452 (illus.) Manufacturers’ agents, 490, 545–546, 545 (illus.), 546 (table), 548 Manufacturers’ sales branches, 546–548 Manufacturers’ wholesalers, 546 Maquiladoras, 287 Marginal analysis, 680–683, 681 (illus.), 681 (table), 682 (illus.), 682 (table), 683 (illus.), 694 Marginal cost, 680 Marginal revenue, 680–681 Markdowns, A9 Market-based cost, 693 Market channels channel conflict, 498–499, 499 (illus.), 512 channel cooperation, 497–498, 512 channel integration, 500–501, 513 dual distribution, 491, 510–511 exclusive dealing, 511 refusal to deal, 511 restricted sales territories, 511 tying agreements, 511 Market density, as segmentation variable, 185 I-21 Market growth/market share matrix, 36–37, 37 (illus.), 53 Marketing See also Digital marketing; Electronic marketing; Green marketing; International marketing; Marketing concept; Marketing costs; Marketing environment; Marketing managers; Marketing mix; Marketing objectives; Marketing strategy; Mobile marketing by Apple, 59–60 career options in, 22 consumer awareness enhanced by, 20 customer focus of, 4–5 database marketing, 567 definition of, 4, 23 dynamic environment of, 12–13 ethical issues in, 113–116, 114 (table), 127 exchanges in, 11, 12 (illus.), 23 financial analysis, A1–A9 global economy, 17–22 green marketing, 21–22 importance of, 19 micromarketing, 186 motivating marketing personnel, 46, 53 nonprofit marketing, 18, 434–436, 438 nostalgia marketing, 191 packaging and, 459–462, 466 relationship marketing, 16–17, 23–24, 93, 322 role of, 24 of services, 426–428, 431 social responsibility in, 21–22, 103–128 technology and, 20, 21 (table), 86–90, 94 telemarketing, 536 value-driven, 9–12, 23 viral marketing, 329, 584, 588 Marketing channel management, 512 Marketing channels, 483–494, 512 for business products, 489–491, 489 (illus.) channel alliances, 491 channel leadership, 497–498, 512 competitive priorities, 496–497 for consumer products, 488–489, 488 (illus.) dual distribution, 491, 510–511 exchange efficiencies, 485 (table), 487–488, 487 (illus.) explanation of, 483–484 functions of, 486–488, 512 legal issues, 510–511, 513 multiple marketing channels, 491, 491 (illus.) role of, 485 (illus.) selecting, 492–494, 492 (illus.), 512 strategic channel alliance, 491 strategic issues in, 496–501, 512 types of, 488–491, 512 Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it I-22 Subject Index Marketing citizenship, 105, 127 Marketing communication See also Promotion integrated marketing communication, 566–567 Marketing concept evolution of, 14–15 explanation of, 13–14, 23 implementation of, 15–16 market orientation, 15 product orientation, 14 sales orientation, 14–15 Marketing cost analysis, 49–50, 54 Marketing costs, 18, 49–50, 580, 588, 607 Marketing decision support systems (MDSS), 164, 167 Marketing department, organizational structure of, 45, 53 Marketing environment See also Environmental forces competitive forces in, 72–75 definition of, 12 economic forces in, 75–78, 94 examining and responding to, 70–72 explanation of, 12–13, 23, 70, 94 legislation in, 70, 78–83, 81 (table), 94 marketing mix and, (illus.), 12, 13 political forces in, 78–86, 94 regulation, 78, 83–86, 84 (illus.), 84 (table), 86 (table) sociocultural forces in, 90–93 strategic planning and, 37–38 technological forces in, 20, 21 (table), 86–90 Marketing ethics, 112–123, 127 acceptable standards, 112–113, 127 codes of conduct, 119–120, 127 codes of ethics, 83, 85, 107, 119, 127 decision making, 116–117, 116 (illus.) explanation of, 107, 112, 127 improving, 120, 122 individual factors and, 117, 127 opportunity, 118–119 organizational relationships, 117–118 Marketing implementation communicating within marketing unit, 46–47, 53 coordinating marketing activities, 47, 53–54 explanation of, 44–45, 53 in marketing plan, 52, 52 (table) marketing unit, 45 motivating marketing personnel, 46, 53 timetable for, 47–48, 53 Marketing information, 485 (table) Marketing information systems (MIS), 162–163, 167 Marketing intermediaries, 484, 485 (table), 487, 487 (illus.), 494, 512 Marketing managers channel activities of, 485 (table) channel selection by, 492 communication within marketing unit, 46–47, 53 coordinating marketing activities, 47, 53–54 distribution and, 7–8 environmental forces and, 70–71 ethics and, 117 marketing orientation and, 15, 23 marketing potential and, 190 Marketing messages, international marketing, 276 Marketing mix, 181 creation of, 44, 53 customer satisfaction and, 214 digital media and, 301–304, 302 (table), 340 distribution variable and, 7–8, 436 explanation of, 6–9, 23 globalization of, 301–304, 302 (table) marketing environment and, (illus.), 12–13 marketing strategy and, 42, 44, 53 negative attitudes and, 226 nonprofit organizations, 436, 438 price variable and, 8, 23, 686–687, 697 product variable and, 7, 23 promotion variable and, 8, 23 for services, 424–430, 438 value and, 10 variables, 7–8, 23, 44 Marketing objectives definition of, 42, 53 in marketing plan, 52, 52 (table) marketing strategies and, 34 (illus.), 42–44, 53 Marketing performance, social responsibility and, 124–126 Marketing personnel communication within marketing unit, 46–47, 53 motivation of, 46, 53 Marketing plan components of, 51–52, 52 (table) creation of, 51–52, 54 explanation of, 51, 54 sample, B1–B8 Marketing research conclusive research, 146 (table), 148, 167 databases for, 163–164, 167 data collection, 151–160, 167 descriptive research, 148 ethics in, 164–165, 165 (table) experimental research, 148 explanation of, 144 exploratory research, 146–148, 146 (table), 167 importance of, 144–146 international, 166–167 interpreting findings, 162, 167 issues in, 164–167 marketing decision support systems (MDSS), 164, 167 marketing information systems (MIS), 162–163, 167 mystery shoppers, 143 process of, 148–161, 149 (illus.) reliability, 150, 167 reporting research findings, 161, 167 statistical interpretation, 160, 167 steps of, 148, 149 (illus.), 167 technology for, 162–164 validity, 150, 167 Marketing strategy See also Marketing plan definition of, 42 evaluation of, 48–51 first-mover and late-mover advantage, 41–42, 53 flexibility in, 44 implementation of, 44–48, 53 marketing mix and, 42, 44, 53 marketing objectives and, 34 (illus.), 42–44, 53 in marketing plan, 52, 52 (table) motivating marketing personnel, 46, 53 performance standards for, 48, 54 sales analysis, 48–49, 54 SWOT analysis, 39–40, 40 (illus.), 53 target market selection, 43, 53, 177–192, 177 (illus.) Marketing symbols, 276, 427 Marketing unit communicating within, 46–47, 53 definition of, 45 Market manager, 408–409 Market opportunities, 38, 53, 149, 167 Market orientation, 15, 23 Market potential, 190 Markets, explanation of, 36, 176, 196 Market segmentation, 179–181, 196 See also Segmentation variables Market segment profiles, 189–190, 196 Market segments evaluating, 190–192, 196–197 explanation of, 179 Market share, 36 as pricing objective, 703–704, 703 (table), 722 Market share analysis, 49 Market tests, 195, 197 Markup pricing, 708–709, 722 Markups, A7–A9, 708–709 Marriage, 90, 92 See also Families Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Subject Index Maslow’s hierarchy of needs, 223, 223 (illus.), 586 Mass media advertising, 567 Materialism, promotion and, 586, 588 Materials handling, 505–506, 613 Maturity stage, product life cycle, 370 (illus.), 373–374, 373 (table) MDSS See Marketing decision support systems Media, advertising dollars spent on, 605 (illus.) Media plan, advertising campaign, 604–608, 604 (illus.), 605 (illus.), 605 (table), 608 (table) Media-sharing sites, 325–326 Megacarriers, 510 Membership reference group, 232, 239 Merchandise allowance, 655 Merchant wholesalers, 542–545, 543 (illus.), 543 (table), 548 MERCOSUR See Southern Common Market Metropolitan statistical area (MSA), 185 Mexico, 278, 279 (table), 286–287, 296 Micro-blogging, 323 Micromarketing, 186 Middle class, 234 (table), 235 Millenial generation, 170 Million Dollar Database, 263 MIS See Marketing information systems Misleading advertising, 599 Missionary salespeople, 637–638, 657 Mission statement, 33–34, 34 (illus.), 53 MNCs See Multinational corporations Mobile apps, 328–329, 578, 606 Mobile computing devices, marketing and, 327 Mobile devices, 87–88, 327–328 Mobile marketing, 21, 87–88, 203, 255, 327–328, 578, 606 crowdsourcing, 158, 171, 606 recall rate, 612 Mobile payment, 20–21, 242, 286, 329, 337 Mobile websites, 328 “Mobisodes,” 43 Modified rebuy purchases, 256 Monetary pricing, 437 Money refunds, 652 Monopolistic competition, 74, 74 (table), 689 Monopoly, 74, 74 (table) Mood, consumer buying decision process and, 220 Morality, 283 Morocco, 279 Motivation of marketing personnel, 46, 53 of salespeople, 645–647, 657 Motives, buying decision process and, 223–224, 223 (illus.), 239 M-PESA money transfer service, 286 MRO supplies, 368 MSA See Metropolitan statistical area Multiculturalism See Diversity Multimedia messages, 328 Multinational corporations (MNCs), 298 Multinational enterprises, 298 Multiple-choice questions, 159 Multiple marketing channels, 491, 491 (illus.) Multiple packaging, 462 Multiple regression analysis, 195 Multiple sourcing, 260 Multiple-unit pricing, 716–717, 723 Mystery shoppers, 143 N NAFTA See North American Free Trade Agreement NAICS See North American Industry Classification System NARB See National Advertising Review Board National Advertising Division (NAD), 86 National Advertising Review Board (NARB), 86 National Business Ethics Survey (NBES), 118, 120, 122 National Highway Traffic Safety Administration, 8, 18 Needs Maslow’s hierarchy, 223, 223 (illus.), 586 promotion creating, 586, 588 Negative reference group, 232 Negotiated pricing, 711, 722 Negotiation, buying process, 255–256, 264 Neighborhood shopping centers, 531, 547 New-business sales, 637 New-product-development process, 393–402, 394 (illus.), 409 business analysis, 395 (illus.), 396, 409 commercialization, 395 (illus.), 399–401, 401 (illus.), 409 concept testing, 395, 395 (illus.), 396 (illus.), 409 idea generation, 394–395, 395 (illus.), 409 product trial, 572 screening, 395, 395 (illus.), 409 test marketing, 395 (illus.), 397–399, 399 (table), 409 New-product pricing, 710 (table), 712–713 New release, 616 Newspapers, advertising in, 605, 605 (illus.), 608 (table) I-23 News releases, 577 New-task purchases, 256 New Zealand, 280 (table) Nicaragua, 287 Nigeria, 279 Noise, 569, 588 Nonfunctional shoppers, 223 Nonprice competition, 675 (illus.), 676–677 Nonprobability sampling, 154, 167 Nonprofit marketing, 434–436, 438 Nonprofit organizations marketing by, 18, 434–436, 438 marketing mix, 436 target market for, 436 Nonstore retailing, 535, 548 Nontariff barriers, 281 North American Free Trade Agreement (NAFTA), 286–288 North American Industry Classification System (NAICS), 262, 263 (table), 265 Norway, 280 (table) Nostalgia marketing, 191 Nutrition labeling, 464 Nutrition Labeling and Education Act (1990), 81 (table), 82, 464 O Obesity, healthy food options, 12 Objective-and-task approach, 603 Observation methods, 159–160 Occupation, as segmentation variable, 184 Odd-even pricing, 717–718, 723 Off-price retailers, 529, 530 (illus.), 547 Offshore outsourcing, 296 Offshoring, 296 Oligopoly, 74, 74 (table) Online coupons, 649, 650 (illus.) Online fraud, 237, 239, 338, 341 Online media See Digital media Online-only sales, 523 Online retailing, 537, 554 Online shoppers, 223, 522 Online shopping, 536 Online surveys, 155 (table), 157, 167 Online tracking, 222, 337 Online videos, 88 On-site computer interview, 157 Open-ended questions, 159 Open social class, 232 Operating ratios, A5–A6 Operations management, 482, 483 (table), 512 Opinion leaders, buying decision process and, 232, 233 (table), 239 Opportunities (SWOT analysis), 39–40, 40 (illus.) Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it I-24 Subject Index Opportunity, 118–119 Opportunity cost, 437 Order delivery, 513 Order getters, 636–637, 636 (illus.), 657 Order handling, 503, 513 Order lead time, 504–505 Order processing, 503–504, 513 Order takers, 636 (illus.), 637, 657 Organic foods, 92, 98, 144–145 Organizational (corporate) culture, 117, 127 Organizational factors, business buying decision process, 259 (illus.), 261, 264 Organizational market, 177, 196 Organizational relationships, 117–118, 127 Organizational resources, 37–42, 53 Organizational structure ethics and, 117, 127 for international trade, 299–301, 299 (illus.), 304 of marketing department, 45, 53 for product management, 408, 409–410 Organized retail crime, 237, 239 Outdoor advertising, 608 (table), 609 Outlet centers, 532 Outsourcing, 296, 501 P Pacific Rim, 291 Packaging, 93, 466, 485 category-consistent packaging, 461, 466 color of, 459–460 considerations for, 459–460, 466 criticisms of, 462–463 definition of, 458 “frustration-free” packaging, 462 functions of, 458–459 handling-improved packaging, 462 innovation in, 461–462 labeling, 463–465 marketing and, 459–462, 466 multiple packaging, 462 redesigning packaging, 461 secondary-use packaging, 461 sustainable packaging, 485 “wrap rage,” 462 Packaging materials, 458 PACs See Political action committees Partnerships, 253 Party plan, 538, 631 Patronage motives, 224 Payment processing, 19 mobile payment, 20–21, 242, 286, 329, 337 Payoffs, 281–282 Peak demand, 429, 438 Peer-to-peer transfers, 70 Penetration pricing, 713, 722 Per capita consumption data, 187 Percent-of-sales approach, 603 Perception, buying decision process and, 221–222, 239 Perceptual mapping, 405, 405 (illus.) Perceptual organization, 222 Performance evaluation in marketing plan, 52, 52 (table) of marketing strategy, 48–51 of salespeople, 647–648, 648 (illus.) Performance ratios, A5 Performance standards, 48, 54 Periodic discounting, 711–712, 722 Perishability, 429, 437–438 Personal interview survey, 155 (table), 156, 167 Personality, buying decision process as, 227–228, 239 Personality characteristics, segmentation variables as, 186–187 Personal selling, 428, 576, 588, 657 approach, 634 bribery, 81, 114, 643 as career, 631 closing the sale, 635 following up, 66 nature of, 630–632 overcoming objections, 635 preapproach, 634 process, 633, 633 (illus.) prospecting, 632 (illus.), 633–634 relationship selling, 638–639 sales presentation, 634–635, 657 team selling vs., 639, 640 (illus.) Personnel See Marketing personnel Pet food industry, 243 Pharmaceutical Research and Manufacturers of America, 85 Phaseout, 407–408, 407 (illus.) Philanthropic responsibility, 106 (illus.), 107, 127 Photo-sharing sites, 325 Physical distribution, 501–510, 513 cycle time, 502–503 environmentally friendly methods, 505 explanation of, 501–502, 503 (illus.) inventory management, 504–505, 504 (illus.) marketing channel activities, 485 (table) materials handling, 505–506, 513 order processing, 503–504, 513 transportation, 507–510, 508 (table), 510 (illus.), 513 warehousing, 506–507, 513 Physical surroundings, consumer buying decision process and, 219–220 Physiological needs, 223, 223 (illus.) Piggyback transport, 509 Pioneer advertising, 599, 620 Pioneer promotion, 572 Pipelines, 508, 508 (table) Piracy, 70, 237, 239, 290 Pirating, 282, 339 Place utility, 487 Plastic bags, 708 Plastic packaging material, 460 PMSA See Primary metropolitan statistical area Podcasting, 326 Point-of-sale product demonstrations, 225 Point-or-purchase (POP) materials, 652–653 Political action committees (PACs), 79 Political forces, 78–86, 94 See also Legislation; Regulation Political process, company participation in, 79–80, 94 Population, 152–153 Population density, 185 Portugal, 289 Positioning, 405–406, 405 (illus.), 409, 532–533, 547 Possession utility, 487 Postage-stamp pricing, 693 Postpurchase evaluation, 217 Posttest methods, 612, 620 Power shopping centers, 532, 547 Preapproach, 634 Predatory pricing, 115 Premium money, 656 Premium pricing, 714, 722 Premiums, 654 Press conferences, 577, 616 Press release, 616, 617 (table) Prestige demand, 677–678, 678 (illus.) Prestige pricing, 718–719, 719 (table) Prestige products, 688 Prestige-sensitive buyers, 688 Price competition, 675–676, 675 (illus.) Price-conscious individuals, 688 Price discounting, 691–693, 692 (table) allowances, 692 (table), 693 cash discounts, 692, 692 (table), 694 quantity discounts, 692, 692 (table) seasonal discounts, 692, 692 (table), 695 trade discounts, 691, 692 (table) Price discrimination, 690 Price elasticity of demand, 257, 679–680, 679 (illus.), 680 (illus.), 694 Price fixing, 80, 115, 690 Price gouging, 115 Price leaders, 720, 720 (illus.), 723 Price lining, 714–715, 715 (illus.), 722 Price/pricing bait pricing, 714, 722 base-point pricing, 693 Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Subject Index basis for, 707–710, 722 break-even analysis, 673 (illus.), 684–685, 694 bundle pricing, 716, 716 (illus.), 722 in business buying, 264 business markets, 691–694 captive pricing, 713–714, 714 (illus.), 722 cash and credit prices differ, 691 channel member expectations, 686–687 comparison discounting, 720–721 competition and, 689–690 competition-based pricing, 72, 710 competitors’ prices, 706–707 “congestion pricing,” 686 cost-based pricing, 707–709, 722 cost-plus pricing, 708, 722 costs, 685–686 customary pricing, 718, 723 customers’ interpretation and response, 687–688 deceptive pricing, 690 demand-based pricing, 429, 438, 709, 709 (illus.), 722 determining a specific price, 721 differential pricing, 710 (table), 711–712, 722 for digital newspaper editions, 727–728 dynamic pricing, 698 of e-books, 673 ethical issues, 114 (table), 115 everyday low prices (EDLP), 717, 718 (illus.), 723, 726 explanation of, 674–675, 694 external reference price, 688, 688 (illus.) factors affecting pricing decisions, 684–690, 685 (illus.) farmers’ market, 725 financial analysis, A7–A9 F.O.B pricing, 693, 695 freight absorption pricing, 693 geographic pricing, 693, 695 internal reference price, 687 legal and regulatory issues, 690–691 marginal analysis, 680–683, 681 (illus.), 681 (table), 682 (illus.), 682 (table), 683 (illus.), 694 marketing channel activities, 485 (table) marketing mix variables, 8–9, 23, 686–687, 694 markup pricing, 708–709, 722 multiple-unit pricing, 716–717, 723 negotiated pricing, 711, 722 new-product pricing, 710 (table), 712–713 odd-even pricing, 717–718, 723 organizational and marketing objectives, 684–685 penetration pricing, 713, 722 periodic discounting, 711–712, 722 postage-stamp pricing, 693 premium pricing, 714, 722 prestige pricing, 718–719, 719 (table) price discounting, 691–693, 692 (table) price leaders, 720, 720 (illus.), 723 price lining, 714–715, 715 (illus.), 722 price skimming, 713, 722 pricing objectives, 685, 694, 702–705, 705 (illus.), 722 product-line pricing, 713–714, 722 professional pricing, 719, 723 promotional pricing, 719, 723 promotion and, 586, 588 psychological pricing, 710 (table), 715–716, 722 random discounting, 712, 712 (illus.), 722 reference pricing, 715, 722 renewable energy projects, 697 secondary-market pricing, 711, 722 of services, 428–430, 437 special-event pricing, 720, 723 stages for establishing prices, 702 (illus.), 722 strategy selection, 710–720, 710 (table), 722 target market’s evaluation of, 705–706, 706 (table), 722 tensile pricing, 712 transfer pricing, 693, 695 uniform geographic pricing, 693 zone pricing, 693, 695 Price skimming, 713, 722 Pricing objectives, 685, 694, 702–705, 705 (illus.), 722 actions to achieve, 703 (table) cash flow, 703 (table), 704, 704 (illus.) market share, 703–704, 703 (table), 722 profit, 703, 703 (table), 722 return on investment (ROI), 703, 703 (table), 722 status quo, 704–705 survival, 703, 703 (table), 722 Primary data collecting, 152–153, 167 explanation of, 151 Primary demand, 572 Primary metropolitan statistical area (PMSA), 185 Principles, 117 Print media, 605–607, 605 (illus.), 608 (table), 612 Privacy, 165, 222, 337–338, 341 Private brands, 451–452, 452 (illus.) Private distributor brands, 451–452, 452 (illus.) Private warehouses, 506 I-25 Probability sampling, 153, 167 “Problem children” (products), 36 Problem recognition, 215, 259, 259 (illus.) Process materials, 367–368 Procompetitive legislation, 80–82 Producer markets, 248–249, 249 (table) Product adoption process, 375–377, 376 (table), 380 Product advertising, 599, 620 Product characteristics, promotion mix and, 579–580, 580 (illus.) Product competitors, 72, 94 Product deletion, 407–408, 409 Product design, 403, 409 Product development, 393–394, 395 (illus.), 397, 409 See also New-product-development process Product differentiation, 402–404, 409 explanation of, 402 through product design and features, 403–404, 409 through product quality, 402–403, 409 through product support services, 404, 409 Product division structure, 301 Product features, 403, 409 Product information, ethical issues, 114 (table) Product item, 368, 380 Productivity, vacation time vs., 288 Product life cycle, 370–375, 370 (illus.), 375 (illus.), 380 decline stage, 370 (illus.), 374–375 definition of, 370 growth stage, 370 (illus.), 371–372 introduction stage, 370–371, 370 (illus.) maturity stage, 370 (illus.), 373–374, 373 (table) Product line, 368, 380 Product-line pricing, 713–714, 722 Product management, 408–409 line extensions, 390–391, 409, 456 modification for, 391–395 organizational structure for, 408–410 Product manager, 408–409 Product mission, 34 Product mix, 368–370, 380 Product modification, 391 Product orientation, 14 Product phaseout, 407–408, 407 (illus.) Product placement, 584–585, 585 (illus.), 588 Product positioning, 405–406, 405 (illus.), 409 Product quality, 402–403, 408–409, 705, 705 (illus.) Product recalls, 114, 125 Product repositioning, 406–407, 409 Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it I-26 Subject Index Product roll-out, 400 Product run-out, 407 (illus.), 408 Products adopter categories, 377 adoption process, 375–377, 376 (table), 380 business products, 362, 366–368, 380 classification of, 36–37, 362–368, 380 conspicuousness of, 232 consumer products, 362–366, 380 consumer protection legislation, 82–83 definition of, 7, 23, 360–362, 380 deletion of, 407–409 differentiation, 402–404, 409 eco-friendly, 93, 97, 460, 587 elimination of, 407–408 environmentally friendly, 93 ethical issues, 114, 114 (table) failure of, 377–380, 378 (table) false representation of, 80 goods as, goods-dominant, 420 (illus.) green products, 93, 97, 109–110, 216, 362 (illus.), 367 harmful, 587–588 ideas as, life cycles, 370–375, 370 (illus.), 375 (illus.), 380 managing, 390–395, 408–409 marketing mix variable, 7, 23 new product development, 393–402, 394 (illus.) phaseout, 407–408, 407 (illus.) placement for promotion, 584–585, 585 (illus.), 588 positioning, 405–406, 405 (illus.), 409 prestige products, 688 product line, 368, 380 product mix, 368–370, 380 promotion mix and, 579–580 quality of, 402–403, 408, 705, 705 (illus.) reinventing concept of, 110 repositioning, 406–407, 409 roll-out, 400 run-out, 407 (illus.), 408 service-dominant, 420 (illus.) services as, successful, 378 (table), 379–380 terminology, 368–370 value of, 23 Product safety, genetically modified foods,≈79 Product specifications, 258 (illus.), 259 Product support services, 404, 409 Product tampering, 458–459, 577 Product trial, 572 Professional pricing, 719, 723 Profit break-even analysis, 673 (illus.), 684–685, 694 marginal analysis, 680–683, 681 (illus.), 681 (table), 682 (illus.), 682 (table), 683 (illus.), 694 need for, 19 as pricing objective, 703, 703 (table), 722 Promotion celebrity endorsers, 575 communication process and, 567–570 cost of, 586–587 criticisms and defenses of, 585–588 deception and, 585, 588 definition of, 570 ethical issues, 114, 114 (table) greenwashing, 114, 579 of harmful products, 587, 588 in-program product placement, 584–585, 588 integrated marketing communication, 566–567 marketing channel activities, 485 (table) marketing mix variable, 8, 23 materialism and, 586, 588 need created by, 586, 588 price and, 586, 588 product placement, 584–585, 585 (illus.), 588 promotion mix, 574–581 reseller support, 573 role and objectives of, 570–574 sales promotion, 577–578, 588, 648–657 of services, 427–428, 436, 438 viral marketing, 329, 584, 588 Promotional budget, 578 Promotional pricing, 719, 723 Promotional programs, 428 Promotion mix, 574–581 advertising, 574–576, 596–613 availability of promotional techniques, 581 buzz marketing, 583, 588 cost of promotional methods and, 580, 588 definition of, 574 electronic word of mouth, 573, 588 elements of, 574, 574 (illus.), 588 intensity of market coverage and, 580 personal selling, 428, 576, 588 product characteristics and, 579–580 promotional budget and, 578 promotional objectives and policies, 578 public relations, 576–577, 588, 614–620 push and pull channel strategies, 581, 581 (illus.), 588 sales promotion, 577–578, 588 selecting elements of, 578–581 target market and, 579 word-of-mouth communications, 428, 438, 582–584, 583 (illus.), 588 Prospecting, 632 (illus.), 633–634 Prospects, identifying, 572–573 Prosperity (economic), 75–76 Protect Intellectual Property Act, 339 Prototype, 397 Proxemic communication, 576 Psychographic variables, 182 (illus.), 186–187, 191, 196 Psychological influences attitudes of, 225–227, 239 on consumer buying decision process, 220–229, 239 emotions as, 225 explanation of, 220 learning, 224–225, 239 motives as, 223–224, 223 (illus.), 239 perception as, 221–222, 239 personality and self-concept, 227–228, 239 Psychological pricing, 710 (table), 715–716, 722 Publicity, 577, 616 Publicity-based public relations, 616–617 Public relations, 576–577, 588, 614–620 effectiveness, 618, 621 explanation of, 614 green campaigns, 616 mishaps, 619 (table) publicity, 566, 616 tools for, 615–618, 621 top five campaigns, 615 (table) unfavorable PR, 617–618 Public relations audit, 617 Public warehouses, 506–507 Pull medium, Internet as, 329–330, 340 Pull policy, 581, 581 (illus.), 588 Pulsing schedule, 608 Purchase diaries, 155 Purchase products, 576 Pure competition, 74–75, 74 (table) Push advertising, 608–609 Push money, 656 Push policy, 581, 581 (illus.), 588 Q QR codes, 225, 328, 330 QR scanning app., 328 Qualitative data, 146 Quality business customers and, 264 of products, 402–403, 408, 705, 705 (illus.) public relations fiascos, 624 of services, 430–434, 431 (table) Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Subject Index Quality product modifications, 391–392 Quantitative data, 146 Quantity discounts, 692, 692 (table) Question marks (products), 36, 37 (illus.), 167 Questionnaires, 159, 161, 165 (table) Quotas, 281 Quota sampling, 154 R Race diversity in the United States, 90–92, 92 (table), 95, 236 as segmentation variable, 184 Rack jobbers, 544, 548 Radiation Control for Health and Safety Act (1968), 111 Radio, advertising on, 605 (illus.), 608 (table), 610 Radio frequency identification (RFID), 505 Railroads, 507, 508 (table) Random discounting, 712, 712 (illus.), 722 Random factor analysis, 195 Raw materials, 367 Reach, 88, 95, 605 Rebates, 652 Recalls, 114, 125 Recall test, 612 Receiver, 568, 568 (illus.), 588 Recession (economic), 75–76 Reciprocity, 252–253, 264 Recognition, 612 Recovery (economic), 75–76 Recruiting, 641–642, 641 (illus.), 657 Recycling, 93, 97, 109, 502 Reference groups, consumer buying process and, 231–232, 239 Reference pricing, 715, 722 Refusal to deal, 511 Regional issues, 609 Regional shopping centers, 531, 547 Regional trade alliances and agreements, 286–292, 304 Regression analysis, 195, 197 Regulation encouraging compliance, 83 marketing environment and, 78, 83–86, 84 (illus.), 84 (table), 86 (table) self-regulatory forces, 85–86, 86 (table), 94 state and local agencies, 85, 94 U.S regulatory agencies, 83–85, 84 (illus.), 84 (table) Reinforcement advertising, 600, 620 Relationship marketing, 16–17, 23–24, 93, 322 Relationship selling, 638–639 Reliability, 150, 167 Religion, targeting by, 180 Reminder advertising, 600, 620 Renting, of luxury goods, 689 Reorder point, 504 Repetition, in advertising, 215 Repositioning, 406–407, 409 Reputation, 37 Research, 160 See also Marketing research conclusive research, 146 (table), 148, 167 descriptive research, 148 experimental research, 148 explanation of, 144 exploratory research, 146–148, 146 (table), 167 hypothesis, 150, 167 interpreting findings, 160, 162, 167 reliability, 150, 167 reporting research findings, 161, 167 statistical interpretation, 160, 167 types of, 146–148 validity, 150, 167 Research design, 149 Reseller markets, 249–250, 264 Reseller support, 573 Restaurants and fast foods, 5, 10–11, 31, 93, 145, 303, 531, 534 Retailers, 484–485, 512, 523, 547 category killers, 529, 547 channel captains, 498 convenience stores, 524 (table), 526, 547 department stores, 524–525, 524 (table), 525 (illus.), 547 discount stores, 524 (table), 525–526, 547 hypermarkets, 524 (table), 527, 547 off-price retailers, 529, 530 (illus.), 547 specialty retailers, 528–529, 530 (illus.), 547 supermarkets, 145, 163, 386, 524 (table), 526, 547 superstores, 524 (table), 526 types of, 547 warehouse clubs, 524 (table), 527–528, 527 (illus.), 547 warehouse showrooms, 524 (table), 528, 547 Retailing, 547 category management, 534–535 economic importance of, 522 explanation of, 522–523 location of retail stores, 530–532, 547 nonstore retailing, 535, 548 online retailing, 537 retail positioning, 532–533, 547 store image, 533–534, 547 strategic issues, 530–539, 547 television home shopping, 536–537 I-27 Retail positioning, 532–533, 547 Retail stores general-merchandise retailers, 524–528, 524 (table), 548 location of, 530–532, 547 store image, 533–534, 547 types of, 524–529, 547 Return on investment (ROI) financial analysis, A7 as pricing objective, 703, 703 (table), 722 RFID See Radio frequency identification Robinson-Patman Act (1936), 81 (table), 690 “Robosurveys,” 155 Role-playing games, 326 Roles, buying decision process and, 230 Roll-out, 400 Routinized response behavior, 218, 238 RSS feeds, 332 Run-out, 407 (illus.), 408 Russia, 277, 279 (table), 285, 298, 345–346, 528 S Safety needs, 223, 223 (illus.) Safety stock, 504 Sales analysis, 48–49, 54 Sales branches, 546 Sales careers, 631 Sales contests, 646, 656 Sales estimates, 190–191 Sales fluctuations, reducing, 573–574 Sales force See Salespeople Salesforce CRM, 639 Sales force management, 640–645, 657 Sales forecasts, 192–196 customer forecasting survey, 193 cycle analysis, 195 Delphi technique, 194 executive judgment, 193, 197 expert forecasting survey, 194 explanation of, 192–193 market tests, 195, 197 random factor analysis, 195 regression analysis, 195, 197 sales force forecasting survey, 194 seasonal analysis, 195 surveys, 193–194, 197 time series analysis, 194–195, 197 trend analysis, 195 Sales managers, 630 compensation plans, 644, 657 motivation by, 645–647, 657 objectives, 640–641, 657 recruiting by, 642, 657 training of sales force, 640 (table), 642–643, 657 Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it I-28 Subject Index Sales offices, 547–548 Sales orientation, 14–15 Salespeople (sales force) compensation plan, 643–645, 644 (illus.), 645 (table), 657 forecasting survey, 194 missionary salespeople, 637–638, 657 motivating, 645–647, 657 objectives, 640–641, 657 order getters, 636–637, 636 (illus.), 657 order takers, 636 (illus.), 637, 657 performance evaluation, 647–648, 648 (illus.) recruiting and selecting, 641–642, 641 (illus.), 657 routing and scheduling, 647 sales presentation, 634–635, 657 size of sales force, 641 support personnel, 637–638, 657 technical salespeople, 638, 657 trade salespeople, 638, 657 training of, 640 (table), 642–643, 657 turnover, 646 types of, 636–638, 636 (illus.), 657 Sales presentation, 634–635, 657 Sales promotion, 577–578, 588, 648–657 consumer sales, 649–657 trade sales, 655–657 Sales reports, 151 Sales representatives, 503 Sales territories creating, 647 managing, 647, 657 restricted, 511 Sales training, 642–643, 657 Samples, 153, 653 Sampling buying process, 255, 264 for primary data, 152–153, 167 Saudi Arabia, 279 SBU See Strategic business unit Scan-back allowance, 655 Screening, 395, 395 (illus.), 409 Search engines, 152 Search qualities, 430 Seasonal analysis, 195 Seasonal discounts, 692, 692 (table), 695 Secondary data explanation of, 151, 167 sources of, 151–152, 153 (table) Secondary-market pricing, 711, 722 Secondary-use packaging, 461 Segmentation variables, 181–190, 182 (illus.), 183 (illus.), 196 age as, 183, 183 (illus.) behavioristic variables, 182 (illus.), 187, 189, 196 benefit segmentation, 187, 189 for business markets, 189 climate as, 186 demographics, 182–185, 182 (illus.), 183 (illus.), 185 (illus.), 196 education as, 184 family life cycle as, 184–185, 185 (illus.) gender as, 181, 184 geodemographic segmentation, 186 geography as, 182 (illus.), 185–186, 189, 196 lifestyle segmentation, 187, 239 market density as, 185 occupation as, 184 personality characteristics as, 186–187 psychographic variables, 182 (illus.), 186–187, 191, 196 race and ethnicity as, 184 Selective demand, 572 Selective distortion, 221 Selective distribution, 495, 495 (illus.), 496 (illus.) Selective exposure, 221 Selective retention, 221–222 Self-actualization needs, 223 (illus.), 224 Self-concept, busying decision process as, 227–228, 239 Self-reference criterion (SRC), 283 Self-regulatory forces, 85–86, 86 (table), 94 Selling See also Personal selling consultative, 638 creative selling, 636 direct-sales model, 486 direct selling, 537–538, 538 (illus.), 538 (illus.), 548, 661 door-to-door selling, 538 party plan, 538, 631 relationship selling, 638–639 salespeople, 634, 636–638, 636 (illus.) team selling, 639, 640 (illus.) virtual sales presentations, 635 Selling agents, 545 (illus.), 546, 546 (table), 548 Service brands, 454, 465 Service-dominant products, 420 (illus.) Service expectations, 431, 434 Service managers, 433 Service quality, 430–434, 431 (table) employee performance, 433 exceptional, 432–434, 432 (illus.), 438 model of, 432 (illus.) specifications for, 433 Services bundling, 425, 429, 438 business buyers and, 254, 264 business services, 368, 419 characteristics of, 420–424, 425 (table), 437 client-based relationships, 423, 425 (table), 437 consumer services, 419 core service, 425, 438 customer contact, 423–424, 424 (illus.), 425 (table), 438 customization, 425 definition of, 360 delivery of, 427 development of, 425–426, 438 distribution of, 426–427, 436, 438 growth and importance of, 418–420, 437 heterogeneity, 422, 422 (illus.), 425, 425 (table), 428, 437–438 inseparability, 421, 425 (table), 426, 437–438 intangibility, 420, 420 (illus.), 425 (table), 426–428, 437–438 marketing mixes for, 424–430, 438 marketing of, 426–428, 431 perishability of, 429, 437–438 pricing of, 428–430, 437 as products, product support services, 404, 409 promotion of, 427–428, 436, 438 quality of, 430–434, 431 (table) supplementary service, 425 time-sensitive, 429 Sexual orientation, targeting by, 180 Share of customer, 17 Sherman Antitrust Act (1890), 80, 81 (table), 510, 690 Shoplifting, 237, 239 Shopping centers, 531–532, 547 Shopping mall intercept interviews, 157 Shopping products, 364–365 SIC System See Standard Industrial Classification System Singapore, 277, 280 (table), 291 Single-line retailers, 528–529 Single-parent families, 185 Single-serving packaging, 459 Single-source data, 164, 612 “Site-to-store” buying, 334 Site-to-store service, 523 Situational influences, on consumer buying decision process, 219–220, 239 Situational involvement, 217–218 Smartphones advertising for, 602 demographics of owners, 236 e-commerce on, 327–328 marketing and, 327 mobile apps, 328–329, 578, 606 mobile Internet activities, 21, 21 (table) payment with, 20–21, 242, 286, 329, 337 as primary phone, 87 QR codes, 225 usage by age, 328 (illus.) Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Subject Index Smoking, 124 SMS messages, 328 Social audit, 617 Social classes, buying decision process and, 232–233, 234 (table), 235, 239 Social commerce platform, 15 Social CRM, 632 Social deal sites, 649 Social influences on consumer buying decision process, 229–233, 234 (table), 235–237, 239 culture and subcultures as, 235–237, 239 explanation of, 229 family influences as, 230–231, 231 (table), 239 opinion leaders as, 232, 233 (table), 239 references groups as, 231–232, 239 roles as, 230 social classes as, 232–233, 234 (table), 235, 239 Social media in China, 279–280 to connect with consumers, 21 customer service using, 428 Social media surveys, 157 Social mission, 34 Social needs, 223–224, 223 (illus.) Social networking, 21, 80 about, 331 buying through, 334 definition, 320 gender differences in, 318 internal social networks, 321 marketing and, 318, 320–323 for surveys, 157–158 usage by adults outside the U.S., 320–321, 321 (illus.) uses for, 336 in the workplace, 338 Social responsibility, 21–22, 103–128, 346 best corporate citizens, 105 (table) community relations, 108 (table), 112, 127 consumerism, 93, 95, 108 (table), 111–112, 127 dimensions of, 105–107, 106 (illus.) economic responsibility and, 106–107, 106 (illus.), 127 explanation of, 104, 123, 127 issues in, 108–111, 108 (table), 127 legislation and, 106 (illus.), 107, 127 marketing performance and, 124–126 nature of, 104–105 by Starbucks, 242 in strategic planning, 123–124 sustainability, 108–111, 108 (table), 127 Social stratification, 232 Social surroundings, consumer buying decision process and, 219–220 Social Technographics Profile, 331–333, 332 (table), 340 Sociocultural forces, 90–93 consumerism, 93, 95, 108 (table), 111–112, 127 cultural values, 92–93, 95 demographic and diversity characteristics in, 90–92, 92 (table), 95 in international trade, 275–277 Software marketing decision support systems (MDSS), 164, 167 marketing information systems (MIS), 162–163 pirated, 339 Sole sourcing, 260 Source, 568, 568 (illus.) South Africa, 278, 279 (table), 359 Southern Common Market (MERCOSUR), 289 South Korea, 291, 320, 552 Spain, 289 Special-event pricing, 720, 723 Specialization, 180 Specialty-line wholesalers, 544, 548 Specialty products, 365 Specialty retailers, 528–529, 530 (illus.), 547 Specifications, 253, 259, 259 (illus.) Spectators, social technographics, 332 (table), 333, 340 SRC See Self-reference criterion Sri Lanka, 279 Stakeholder orientation, 105, 125 Stakeholders definition of, 12 marketing concerns of, 11, 97, 105–107, 113, 124–125 Standard & Poor’s Register, 263 Standard full cost, 693 Standard Industrial Classification System (SIC system), 262 Stars (products), 36, 37 (illus.) State-directed capitalism, 280, 290 Statistics, 160, 167 Status float, 233 Stealing (shoplifting), 237, 239 Stockouts, 504 Stop Online Piracy Act, 339 Store brands, 451–452, 452 (illus.) Store image, 533–534, 547 Storyboard, 610 Straight commission compensation, 644, 645 (table) Straight rebuy purchases, 256 Straight salary compensation, 644, 645 (table) Strategic alliances, 297, 304 I-29 Strategic business unit (SBU), 35–36, 53, 375 Strategic channel alliance, 491 Strategic marketing management, 32 Strategic performance evaluation, 48 Strategic philanthropy, 107 Strategic planning assessing organizational resources and opportunities, 37–42, 53 business-unit strategies, 34–37, 34 (illus.), 53 components of, 32–33, 32 (illus.) corporate strategies, 34–35, 34 (illus.), 53 explanation of, 32, 53 levels of, 34, 34 (illus.) marketing environment and, 37–38 mission statement, 33–34, 34 (illus.), 53 overview of, 32–33 social responsibility in, 123–124 SWOT analysis, 39–40, 40 (illus.), 53 Strategic window, 38, 53 Stratified sampling, 154 Strengths (SWOT analysis), 39, 40 (illus.) Stress-relief drinks, 363 Styling, 403 Subculture, 235–237 Supermarkets, 145, 163, 386, 524 (table), 526, 547 Superregional shopping centers, 531, 547 Superstores, 524 (table), 526 Supplementary service, 425 Supplier Code of Conduct, 115–116 Supplier diversity, 261 Supply chain, 482–483, 512 environmentally friendly supply chain, 497 explanation of, 482, 485–486 marketing channels, 483–494 Supply-chain management, 38, 482–483, 512 competition, 493 definition of, 482, 512 environmental forces, 493–494 ethical issues in, 115–116 information technology, 482 key task sin, 482, 483 (table) physical distribution in, 501–510 Supply management, 482, 483 (table), 512 Support personnel, 637–638, 657 Supreme Court decisions, Citizens United v Federal Election Commission, 79 Survey methods, 154–159, 155 (table), 167 Surveys customer forecasting survey, 193 customer service quality, 432 questionnaire construction, 159, 161 for sales forecasts, 193–194, 197 Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it I-30 Subject Index Survival, as pricing objective, 703, 703 (table), 722 Sustainability, 108–111, 108 (table), 127, 528 Sustainable competitive advantage, 44 Sustainable packaging, 485 Sweden, 285, 288 Sweepstakes, 655, 655 (illus.) Switzerland, 278, 279 (table) SWOT analysis explanation of, 39–40, 40 (illus.), 53 in marketing plan, 52, 52 (table) T Tablet computers, 88, 327 Tactile communication, 576 Taiwan, 291 Tangible cues, 426, 431 Target audience, 600–601, 600 (illus.), 620 Target market, 579 competitors and, 72 explanation of, 5, 23 for nonprofit organizations, 436 selection of, 43, 53, 177–192, 196–197 Target market selection, 43, 53, 177–192 concentrated strategy, 178 (illus.), 179–180, 196 differentiated strategy, 178 (illus.), 180–181, 196 market segmentation, 179–181 by religion or sexual orientation, 180 segmentation variables, 181–190, 182 (illus.), 183 (illus.) specialization, 180 steps in, 177 (illus.), 196 targeting strategies, 177, 178 (illus.), 179–181 undifferentiated strategy, 177, 178 (illus.), 179, 196 Target public, 436 Tariffs, 280–281 Tattoos, 431 Team selling, 639, 640 (illus.) Technical salespeople, 638, 657 Technological forces, 86–90, 285–286 Technology adoption and use of, 89–90 definition of, 87 dynamics of, 88, 95 impact of, 87–88 marketing and, 20, 21 (table) in marketing environment, 20, 21 (table), 86–90 for marketing research, 162–164 negative impacts of, 88 reach of, 88, 95 salesforce CRM and, 639 self-sustaining nature of, 89 supply-chain management, 482 Technology Facilitates Supply-Chain Management (TECSYS), 484 Telemarketing, 536 Telephone Consumer Protection Act (1991), 81 (table) Telephone depth interview, 156 Telephone surveys, 155–156, 155 (table), 167 Television, advertising on, 605 (illus.), 608 (table), 610 Television home shopping, 536–537 Tensile pricing, 712 Test drives, 225 Test marketing, 395 (illus.), 397–399, 399 (table), 409 Text messages, 317–318 Thailand, 277, 279 (table), 291, 552 Theory of Reasoned Action, 226 Threats (SWOT analysis), 39, 40 (illus.) Time, consumer buying decision process and, 220 Time-sensitive services, 429 Time series analysis, 194–195, 197 Time utility, 486–487 Tobacco companies, 587 Total budget competitors, 73, 94 Total product offering, 360–362 Total quality management (TQM), 403 Touching, 576 Toxic Substance Act (1976), 111 Tracking, online, 222, 337 Trade associations, 85, 151 Trade credit, 674 Trade discounts, 691, 692 (table) Trademark Counterfeiting Act (1980), 81(table) Trademark Law Revision Act (1988), 81 (table), 455, 599 Trademarks, 80, 276, 446, 455, 465 Trade name, 446, 465 Trade restrictions, 281 Trade sales, sales promotion, 655–657 Trade salespeople, 638, 657 Trade sales promotion methods, 655–657 cooperative advertising, 656 dealer listings, 656 dealer loader, 656 free merchandise and gifts, 656 premium money, 656 sales contests, 656 trade allowances, 656–657 Trading companies, 294–295, 304 Traditional specialty retailers, 528–529, 530 (illus.), 547 Training of marketing unit, 46 of sales personnel, 640 (table), 642–643, 657 Transfer pricing, 693, 695 Transmission media, 569 Transportation, 513 coordinating, 509–510 intermodal transportation, 509–510, 510 (illus.) international cargo, 508 modes of, 507–509, 508 (table) for physical distribution, 507–510, 508 (table), 510 (illus.) Travel industry, 716 Trend analysis, 195 “Trickle-down” effect, 233 Truck jobbers, 544 Trucks, 507–509, 508 (table), 509 (illus.) Truck wholesalers, 544–545, 544 (table) Trust, 113 Turkey, 279 (table) Turkish Airlines, 252 Tying agreements, 511 U U.K Bribery Act, 82, 282, 643 Unaided recall test, 612 Undifferentiated targeting strategy, 177, 178 (illus.), 179, 196 Unfair competition, 106 Uniform geographic pricing, 693 Uniforms, 426 United Kingdom, 82, 280 (table), 288, 346, 395, 448, 643 United States business cycle in, 75 Central American Free Trade Agreement-Dominican Republic (CAFTA-DR), 287 entrepreneurship in, 280 (table) gross domestic product (GDP), 278 international trade, 279 (table) legislation in, 70, 78–83, 81 (table), 94 median annual household income in, 76 NAFTA, 286–287 online coupon users, 650 (illus.) regulation, 78, 83–86, 84 (illus.), 84 (table), 86 (table) spending on digital advertising, 605 (illus.) top marketing firms, 166, 166 (table) Unit loading, 506 Universal product code (UPC), 463 Unsought products, 366 Usage rate, 504 Users, 258 U.S Foreign Corrupt Practices Act of 1977 (FCPA), 81–82, 282, 643 Utilitarian shoppers, 223 Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Subject Index V W Vacation time, productivity vs., 288 Validity, 150, 167 VALS types, 187, 188 (illus.), 227–229, 229 (illus.) Value definition of, 9–10 marketing driven by, 9–12, 23 marketing mix and, 10 Value-added resellers (VARs), 517 Value analysis, 260 Value-conscious consumers, 688 Value-driven marketing, marketing environment, 12, 23 Values, 117 Vandalism, on Wikipedia, 324 Variable pricing, 437 VARs See Value-added resellers Vending machines, 538–539, 548 Vendor analysis, 260 Venezuela, 296 Venture team, 408 Vertical channel integration, 500–501 Vertical marketing system (VMS), 500, 513 Video games, pirated, 339 Video-sharing sites, 325 Vietnam, 282, 291 Viral marketing, 329, 584, 588 Virtual realities, 326, 335 Virtual sales presentations, 635 VMS See Vertical marketing system Warehouse clubs, 524 (table), 527–528, 527 (illus.), 547 Warehouse showrooms, 524 (table), 528, 547 Warehousing, 506–507, 513 Waterways, 508, 508 (table) Weaknesses (SWOT analysis), 39, 40 (illus.) Wealth, 77 Wheeler-Lea Act (1938), 81 (table), 690 Wholesalers, 484–485, 548 agents, 545–546, 545 (illus.), 546 (table), 548 brokers, 545 (illus.), 546, 546 (table), 548 cash-and-carry wholesalers, 544, 544 (table) channel leadership, 498, 512 commission merchants, 545 (illus.), 546, 546 (table), 548 definition of, 541 drop shippers, 544 (table), 545 eliminating, 488, 512 full-service wholesalers, 542–544, 543 (table), 548 general-merchandise wholesalers, 544 limited-line wholesalers, 544 limited-service wholesalers, 543 (table), 544–545, 544 (table), 548 mail-order wholesalers, 544 (table), 545, 548 manufacturers’ agents, 490, 545–546, 545 (illus.), 546 (table), 548 I-31 manufacturers’ sales branches, 546–548 merchant wholesalers, 542–545, 543 (illus.), 543 (table), 548 rack jobbers, 544, 548 sales offices, 547–548 selling agents, 545 (illus.), 546, 546 (table), 548 services provided by, 541–542 specialty-line wholesalers, 544, 548 truck wholesalers, 544–545, 544 (table) types of, 542–547 Wholesaling, 541–548 See also Wholesalers Wholesome Meat Act (1967), 111 Widgets, 329 Width of product mix, 369, 369 (table), 380 Wikis, 324, 330 Willingness to spend, 77–78, 94 Wireless phone technology, 286 Word-of-mouth communications, 428, 438, 582–584, 583 (illus.), 588 Working classes, 234 (table), 235 World Trade Organization (WTO), 292 “Wrap rage,” 462 Y Yellow pages, advertising on, 608 (table) Z Zone of tolerance, 432 Zone pricing, 693, 695 Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Copyright 2013 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it ... 19, 20 12) 28 Scott Martin, “HP’s $99 Fire Sale on Discontinued TouchPad Sells Out,” USA Today, August 22 , 20 11, www.usatoday.com/tech/products/ story /20 1 1-0 8 -2 2/HPs-99-fire-sale-on-discontinued-TouchPad-sellsout/500970 32/ 1... May 18, 20 11, www.bloomberg.com/ news /20 1 1-0 5-1 8/apple-ipad-s-buzz-saw-success-cuts-into-pc-sales-at-hpdell.html (accessed January 18, 20 12) ; Philip Elmer-DeWitt, “Piper Jaffray: iPad Totally... Question,” Forbes, January 23 , 20 12, www.forbes.com/sites/avidan /20 12/ 01 /23 /kodakfailed-by-asking-the-wrong -marketing- question/ (accessed February 24 , 20 12) 36 Susan Casey, “Object-Oriented: Everything